Bitcoin is entering a clear corrective phase
Bitcoin has entered a clear correction phase after peaking in the $120,000-$125,000 region. Crypto analyst Alejandro₿TC notes that the weekly structure has broken downwards, with the final phase unfolding impulsively, a sign that momentum is currently in favor of sellers rather than buyers.
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The most important level to watch is the $72,000-$74,000 zone. This area previously served as strong support, but has now been lost and turned into resistance. As long as Bitcoin continues to close below this range within this weekly time frame, any upward move should be viewed as a corrective rebound rather than confirmation of continued price appreciation. reversal.
On the other hand, the region between $50,000 and $52,000 stands out as the main magnet. This zone represents a key weekly demand area and the base of the previous impulsive rally. If bearish the pressure continues, it becomes the most logical target for a deeper retracement.
The upcoming monthly closing in 11 days could be decisive. A close below $72,000 would confirm the collapse and increase the likelihood of further downturn. Structurally speaking, the market remains weak below that level, while a decisive pullback above $74,000 would be the first meaningful signal of strength returning.
The compression intensifies near $68,000
Of inconstancy As the price falls within an increasingly narrow range, Bitcoin continues to hover tightly around the $67,000-$68,000 region. The lack of decisive moves in either direction indicates that the market is building energy for a larger expansion move.
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According to Columbus liquidity continues to rise above the $70,000 level, and notable bids remain layered between $64,000 and $66,000. With liquidity stacked on both sides, the market is effectively caught between opposing forces, waiting for a catalyst.
The longer Bitcoin remains trapped in this tightening structure, the more aggressive the final situation outbreak tends to be. These types of compression phases typically end with a strong move as one side of the market is forced to unwind positions.
From here, continued acceptance above the $69,500-$70,000 area would likely open the door for momentum towards heavier liquidity zones overhead. On the other hand, the inability to regain that threshold keeps downside inquiries into the mid-$60,000s firmly in play, especially if bids begin to thin out under pressure. The next decisive step will likely be determined by which side of liquidity is addressed first.
Featured image from Pixabay, chart from Tradingview.com
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